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06-18-18 AgendaCALL TO ORDER City of Atlantic Beach Agenda Commission Workshop Monday, June 18, 2018 - 6:00 p.m. Commission Chamber City Hall, 800 Seminole Road Page 1 TOPICS A. Commission priorities review B. Direction on LEED City program C. City Attorney budget 3-26 Authority and Accountability for Oversight of All Extraordinary Legal Expenses Legal Fee Review Letter 2 PUBLIC COMMENT 3 ADJOURNMENT Please Note: This meeting will be live -streamed and videotaped and can be accessed by clicking on the Meeting Video tab located on the home page of the City's website at www.coab.us. Any person wishing to speak to the City Commission on any matter at this meeting should submit a request to the City Clerk. For your convenience, forms for this purpose are available at the entrance to the Commission Chamber. In accordance with the Americans with Disabilities Act and Section 286.26, Florida Statutes, persons with disabilities needing special accommodation to participate in this meeting should contact the City Clerk's Office by 5:00 PM, the Friday prior to the meeting. Page 1 of 26 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING COMMISSIONER'S REPORT AGENDA ITEM: Authority and Accountability for Oversight of All Extraordinary Legal Expenses SUBMITTED BY: John M. Stinson, Commissioner, Seat No. 2 REPORT DATE: 281h of May 2018 BACKGROUND: In March 2015, the City Commission approved a contract for legal services with Lewis, Longman and Walker to retain Ms. Brenna Durden as legal counsel and City Attorney for the City of Atlantic Beach. In September 2017, the City Commission approved the FY 2017 - 2018 Operating Budget for the City of Atlantic Beach, Florida. Legal fees and expenses appropriated in the budget for FY 2017 -2018 are two hundred -fifty thousand ($250,000.00) dollars. Included in this appropriation was an amount for Legal Fees for Extraordinary Items of ninety-five thousand ($95,000.00) dollars. These extraordinary items include, but were not limited to, matters such as gas / service station code updates, medical marijuana dispensary considerations, and sign code revisions. There may be other historical information not presented in this chronology and not available at the time of the drafting of this report. JUSTIFICATION: City Attorney reports detailing legal fees and a breakdown by department for services rendered, estimate expenses incurred to approach one hundred twenty-one thousand, three hundred fifty-five dollars ($121,355.00) dollars for the first six months of the fiscal year. An annualized forecast of this estimate from the City Attorney would forecast legal fees at year-end to be approximately two hundred forty-two thousand, seven hundred ten ($242,710.00) dollars. Agenda Item #1C. 18 Jun 2018 Page 3 of 26 Agenda Item #1C. 18 Jun 2018 City Finance Director reports detailing legal fees estimate expenses incurred to approach one hundred forty-one thousand, five hundred fifteen ($141,515.00) dollars for the first seven months of the fiscal year. An annualized forecast of this estimate would forecast legal fees at year-end to be approximately two hundred forty-two thousand, five hundred ninety-seven ($242,597.00) dollars. Both forecasts predict expenses to be within budgetary projections, one projection seeming more advantageous than the other. What is notable about these recent years legal expenses incurred is the average legal expenses incurred from 2008 through 2015 is ninety-eight thousand, eight hundred twenty- six ($98,826.00) dollars and the average from 2016 through the projected legal expense incurred in FY 2017 - 2018 is two hundred fifty-three thousand, eighty-nine ($253,089.00) dollars. While there are reasonable explanations for these increases, due to the significance of these increases, it would be prudent for the City Commission to direct closer scrutiny by City staff of any and all future legal expenses expected to be incurred. BUDGET: Budgetary impact is expected to be negligible to non-existent with the upside being a closer focus on legal demands may well result in budgetary savings. RECOMMENDATION: It is recommended that the City Commission charge the City Manager with Authority and Accountability for Oversight of All Extraordinary Legal Expenses Not Specifically Expressed or Enumerated within the Contract engaging Lewis, Longman & Walker and Ms. Brenna Durden as legal counsel and City Attorney for the City of Atlantic Beach. ATTACHMENTS: 1. Unexecuted Contract for Legal Services dated the 14th of March 2016 (note: the actual contract was executed, however an executed copy of said contract was not available to include in this packet) 2. City of Atlantic Beach Budgetary Summary of Expenditures by Department for FY 2017 -2018 3. City Administration Budgetary Combined Summary of Revenues & Expenses for FY 2017 - 2018 Page 4 of 26 Agenda Item #1C. 18 Jun 2018 4. City of Atlantic Beach Budget Presentation from the 1211, of July 2017 5. City of Atlantic Beach Budget Reserve Reconciliation for F'Y2017-2018 6. Lewis, Longman & Walker Estimated Breakdown of Fees by Department Through April 2018 for Services Rendered for FY 2017 - 2018 7. City of Atlantic Beach Legal Fee Breakdown from CoAB Finance Department for FY 2017 -2018 8. City of Atlantic Beach, City Manager Organizational Chart 9. City of Atlantic Beach, City Manager Key Objectives 10. City of Atlantic Beach, City Attorney Key Objectives 11. City of Atlantic Beach, CityAdministration Legal Counsel Budget and Historical Expense PRESENTATIONS: Done at this time. APPROVAL: Approved by: John M. Stinson, City Commission, Seat No. 2 1 Page 5 of 26 Agenda Item #1C. 18 Jun 2018 AMENDED AGENDA ITEM OA March 14, 2016 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM-. Recruitment of City AttorneV SUBMITTED BY: Catherine Berry, J.D., Director of Human Resources DATE: March 14, 2016 STRATEGIC PLAN: None BACKGROUND: In a special called meeting on March 8, the Commission voted tq direct the City Manager to negotiate a contract with the firm of Lewis, Longman and Walker, P,A., which he has done. The contract, a copy of which Is attached, provides for compensation in a hybrid format as follows: Lewis, Longman and Walker will attend All City Commission meetings, Special Called Commission Meetings, Code Enforcement Meetings and Community Development Board meetings and prepare for such meetings, for a monthly retainer of $4500, which is $225/hour, for up to 20 hours. All other services are "non-retalner services" and shall be billed at an hourly rate of $250 an hour in time Increments of .10 hours, Paralegal time shall be billed at $150 an hour and an associate's time will be billed at $200 an hour. Litigation services in Federal or State Court, if any are requested, shall be billed at $250 an hour. Lobbying, pension and public finance/bond services shall be provided, upon request, at negotiated rates. Preapproved out-of-pocket costs will be reimbursed. Travel time or mileage in Duval County will not be charged and outside of Duval County will be billed at one half (1/2) the agreed hourly rate. LLW will be responsible for advising the City Manager when fees and costs reach $7,000a month. Compensation maybe negotiated on an annual basis. RECOMMENDATION: The City Manager be directed to enter into the attached contract with Lewis, Longman and Walker, P.A. on behalf of the City. ATTACHMENTS: Contract for Legal Services BUDGET: $96,000 currently budgeted for legal services REVIEWED BY CITY MANAGER:. Y Page 6 of 26 Agenda Item #1C. 181 u n 2018 AMENDET) AGENDAITEM N3A March 14, 2016 CONTRACT FOR LEGAL SERVICES THIS CONTRACT FOR LEGAL SERVICES, hereinafter referred to as the "Agreement," is made and entered to be effective this 16th day of March, 2016, by and between the City of Atlantic Beach, Florida, hereinafter referred to as the "City" and Lewis, Longman & Walker, P.A., hereinafter referred to as "LLW." Recitals A. The City is a political subdivision of the State of Florida, and maintains its principal place of operations at the City of Atlantic Beach City Hall, 800 Seminole Road, Atlantic Beach, Florida 32233. B. LLW is a Professional Association organized and existing under the laws of the State of Florida, and has its local place of business and office at 245 Riverside Avenue, Suite 150, Jacksonville, FL, 32202. C. LLW was the successful responder to RFP #16-02, issued by the City of Atlantic Beach on January 26, 2016. D. Pursuant to the terms of the RFP, the parties Have negotiated the terms and conditions contained in this agreement. THEREFORE, in consideration of the premises and mutual covenants expressed herein and pursuant to the RFP response submitted by LLW, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged by the parties, the parties agree as follows: 1. Recitals The recitals outlined above are true and correct and are incorporated into and made apart of this Agreement. 2. Incorporate by Reference The parties hereby incorporate by reference into this Agreement the City's needs and requirements detailed in RFP #2016-02, as well as LLW's response to the RFP, considered by the City Commission. Further, LLW agrees to perform any and all services pursuant to this Agreement in a professional manner consistent with and as presented in LLW's response to RFP #2016-02. 3. Position The City hereby engages LLW to serve as and to perform the duties and responsibilitigs of :City Attorney pursuant to the Charter of the City of Atlantic Beach• and the general laws of the State of Florida. LLW designates and the City accepts Brenna M. Durden, Esq. as the primary attorney for City legal work. Brenna Durden may utilize the services of other attorneys and staff in LLW as she deems appropriate for City legal work. Any attorney designated in Brenna Durden'g absence shall meet the minimum requirements outlined in RFP #2016-02. Page 7 of 26 Agenda Item #1C. 18 Jun 2018 AMENDED AGENDA HEM OA March 14, 2016 4. Services to be Performed A. General. LLW shall serve as the City Attorney, who shall act as legal advisor to, and Attorney and counselor for, the City and all of its officers in matters relating to and within the scope of their official duties. All of the resources of LLW will be available to support that role. Specifically, Brenna Durden, Esq. will have the assistance, when necessary, of other members of LLW, secretarial staff, paralegals, law research and technical support. It is expected that Brenna Durden, Esq. or her designate will provide such duties :required pursuant to the Charter of the City of Atlantic Beach and the general laws of the State of Florida. B. Legal Services: The legal services to be provided on a recurring basis may include but will not be limited to the following: 1. To perform the duties and responsibilities pursuant to the Charter of the City of Atlantic Beach and the general laws of the State of Florida. 2. Advise, research, assist and render written opinion, when requested, to the City on a. wide variety of legal areas including but not limited to: general municipal law, labor 1,aw, general, state and federal laws relating to municipal government, intergovernmental relations and rules and regulations. 3. Legal advisor and counselor for all departments and all of its officers in matters relating to their official duties. 4. Prepare, review, or advise on all contracts, bonds, and all other legal and official instruments in which the Municipality is concerned and shall endorse on each his approval of the form and correctness. 5. Review all agenda items. 6. Advise, research and assist the City on a wide variety of legal areas including b -qt not limited to: grants, budgets, bonds, user fees, impact fees, franchise fees, property taxes, special assessments, public disclosure issues, and laws against discrimination. 7. Advise, research and assist the City on a wide variety of legal areas including but not limited to: housing, subdivision and land use law, comprehensive planning, zoning regulations and property rights, eminent domain, economic development activities, public utilities, code enforcement, building codes, real estate law, annexations. 8. Advise, research and assist the City on a wide variety of legal areas including but not limited to: contract law, environmental law, franchise law, municipal leases, purchasing and procurement. 9. Advise, research and assist the City on a wide variety of legal areas including -but not limited to: personnel matters including collective bargaining, union negotiations, arbitration, employee grievances, including advice on the creation of policies and procedures. 10. Advise, research and assist the City on a wide variety of legal areas including but not limited to: criminal prosecution, litigation and trial activity, tort law and proactive methods to avoid litigation. 11. Code Enforcement Board attorney. 12. Prosecute and defend on behalf of the City all complaints, suits and controversies in which the City is a party except where the City's defense is provided either by contract or law by a third ply. 13. FmTjsh the City Commission, the City Manager and the head of any department, his -opinion on any question of law relating to any matter concerning their respective power and duties. Page 8 of 26 Agenda Item #1C. 18 Jun 2018 AMENDED AGENDATrEM#3A March 14,2016 14. Advise the City Commission as to their compliance or non-compliance with the provisions of the Charter and Florida Statutes. 15. Attend all meetings of the City Commission, either in person or by his duly desiggated representative to supply those legal services as may be needed during the meeting. 16. Provide Counsel and legal services for City boards, task forces and committees duly authorized by City Commission. 17. Assist the City in preparation, drafting, revisions of codes, ordinances, resolutions, amendments, leases, policy and procedural manuals, and other documents at the request of the City Commission and/or City Manager. 18. Assist, revise, review and/or advise with acquisition requirements with appropriate departments, evaluate any special legal or cost problems, develop acquisitibri timetables, make preliminary cost estimates and obtain or develop proper legal descriptions of real estate transactions. Prepare documents necessary for routine land purchases and/of sales. All such transactions shall be deemed to be routine unless the Attorney contacts the City in advance and obtains the City's approval that the transaction contemplated is non -routine. 19. Submit, as part of the annual budget process, anticipated expenditures, and revenues'. 20. Provide monthly report to City Manager summarizing legal services activities. 21. Provide all required documentation to the external auditor as part of annual audit. 22. Coordinate and supervise specialized legal services provided by outside counsel. 23. Keep the City Commission, City Manager, and City Clerk informed of legislationor judicial opinions that have potential impact to the City. 24. Meet with City Manager and/or designee on an as needed basis to provide for the operational necessity of the City. 25. Assist in preparation, drafting, revisions of contracts, amendments to the contracts and other legal documents at the request of the commission and/or City Manager. 26. Advise City Commission, City Manager and City Clerk at least once a year on Sunshine Law and public records law, home rule, legislative and quasi-judicial bodies; and all other areas of municipal law, legislative and judicial opinions that could potentially impact the City. 27. Perform any other duties as assigned by the City Charter, or as directed by the City Commission: Compensation. The City shall pay LLW the following compensation for the various types !of legal services provided by LLW: Brenna Durden, Esq. (or her designee when she has an unavoidable scheduling conflict)will attend All Regular City Commission meetings, Special Called Commission Meetings, Code Enforcement Board Meetings and Community Development Board Meetings and prepare for such meetings, up to twenty (20) hours per month for a monthly retainer of $4,500 ($22$/hour). 7f more than twenty (20) hours in any given month is required to provide these services, then LLW shall bill an hourly rate of $250 for anytime over twenty (20) hours. All other services are "non -retainer services" and shall be billed at an hourly rate of $250 in time increments of .10 hours. Paralegal time shall be billed at $150 an hour and associate time will be billed at'$200 an hour. Litigation services in Federal court, State court or administrative hearings,:or anticipation of litigation, if any are requested, shall be billed at $250 an hour. Lobbying;_ pension and public finance/bond services shall be provided, upon request, at negotiated rates. Page 9 of 26 Agenda Item #1C. 18 Jun 2018 AMENDED AGENDAITEM93A March 14,i2016 i Costs; Preapproved out-of-pocket costs incurred by LLW, such as for courier fees, couit reporter fees, etc., will be reimbursed to LLW within 30 days of City's receipt of an invoice. W6st1aw is only charged if necessary to reimburse for costs incurred outside the regular plan with prior approval of the City. Per diem travel will only be charged if pre -approved by the City Manager. LLW shall not charge for secretarial services. Travel time or mileage to and fro M, all City functions located inside Duval County will not be charged. Travel time and costs to functions located outside Duval County will be billed in accordance with Chapter 112, Florida Statutes, and at one half (1/2) the agreed hourly rate. LLW will be responsible for advising the City Manager when fees and costs reach $7,000 a month. Compensation may be renegotiated on an annual basis. i 6. Billing i LLW will submit an itemized statement to the City for each month for Legal ;cervices ands payment shall be due upon receipt. 7. Controlling Law This Agreement and the validity, execution, construction, interpretation, performanceand enforcement thereof shall be governed by the substantive and procedural laws of the State of Florida. Venue shall be in Duval County. S. Termination Either party may terminate this agreement without cause at any time. The City will be obligated to pay LLW for all work completed as of that date. LLW will be obligated to continue represeintation!in, and be compensated at the applicable rate, for all critical matters until new representation can be found, to provide the City with all documentation and files relating to matters of the City and all 6f its other obligations under the Rules Regulating the Florida Bar. 9. Severability i The invalidity or partial ingalidity of any portion of this Agreement will not affect Me validity of any other provision. In the event that any provision of this Agreement is held to be !valid,: the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement or judicial modification of the invalidpxo�vision .` 10. Integration The Agreement sets forth and establishes the entire understanding between the CityandLLW relating to the engagement of LLW by the City. Any prior discussions or representations by or between the parties are merged into and rendered null and void by the Agreement. No amendment or modification of this Agreement shall be valid or effective unless it is in writing' and properly executed by all parties thereto. Page 10 of 26 Agenda Item #1C. 18 Jun 2018 AMENDED AGE1VDA ITEM 03A March 14, 2016 11. Notice I. Any notice required or permitted under this Agreement shall be sent by certified mall to (a) the City at its principal place of operations and (b) to LLW` at its local place of business and office. 12. Conflicts of Interest During the term of this Agreement, Brenna Darden, Esq. and members of LLW shall observe the requirements regarding conflicts of interest as set forth in the Rules Regulating the Florida Bar and its Rules of Professional Conduct. 13. Attorneys Fees In any litigation, lawsuit, legal or other proceeding's brought in connection with the construction, interpretation, meaning, validity, performance or enforcement of this Agreement, the prevailing party shall be entitled to receive all of its costs and reasonable attorney's fees from the othez party. i 14. Annual Evaluation The City Commission may conduct an annual evaluation of the performance of LLW. i 15. Files All files generated as a result of this Contract are the property of the City of Atlantic Beach and shall be tamed over promptly upon request after resolution of all compensation issues: During resolution of compensation issues, the City shall be provided liberal access to its filed in order to protect -its legal interests. During the course of representation, and continuing during cusitody of the City's files, LLW will comply with GS 1 -SL and the Florida Bar's record retention requirements, and will comply with Chapter 119, Florida Statutes. IN WITNESS WHEREOF, the parties executed this Agreement in Duval County, Florida, to be made and entered into the day and year first written above. • i CITY OF ATLANTIC BEACH, a Florida municipality. By: Nelson Van Liere, City Manager LEWIS LONGMAN & WALKER, P.A. By; BrennaDurden, Esq., Shareholder Page 11 of 26 City of Atlantic Beach Summary of Expenditures by Division General Fund 18 Agenda Item #1C. 18 Jun 2018 Page 12 of 26 Actual Actual Estimate Budget Increase 2014.2016 2015.2016 2016 2017 2017.2618 Owasso City Administration City Commisslon 38,708 39,951 41,630 47,760 6,130 City Manager 235,093 243,675 318,674 3071943 69,269 City Clark 253,095 263,460 281,271 320,306 99,034 Finance and Administration 838,441 884,840 862,111 930,734 68,623 Information Technology 766,063 777,644 717,634 771,460 53,626 Human Resources 199,795 213,385 211,942 226,545 16,603 Legal Counsel 96,150 235,824 233,135 260,000 18,865 Total 2,421;346 2,668,777 2,856,397 2 936 747 270,360 Planning and Zoning 146,633 237,488 129,824 328,716 196,899 General Government 492,042 1;006,760 490,026 845,007 356,382 Police Department Administration 572,488 666,692 469,495 818,076 348,581 Patrol 2,406,853 2,766,434 2,633,850 2,810,013 174,163 Detective 322,262 324,090 198,284 401,046 201,612 Dispatch 274,603 303,382 289,469 358,664 751706 Animal Control 90,822 74,055 100,065 92,747 (7,633) School Crossing Guards 9,850 10,017 . 10,052 10,680 626 Total 3,676,878 4,137,871 3,703,205 4,491,418 793,067 Piro Fire Control / Rescue 1,680,045 1,111,107 1,143,011 1,262,802 119,791 Lifeguards 231,426 211,607 239,787 262,086 22,299 Total 1,318,471 1,322,614 1,382;798 1.624,089 142,090 Code Enforcement 50,204 44,372 66,128 E 76,862 9,429 Pubilc Works Administration 441;985 459,898 4531714 431,754 (21,960) Fleet Maintenance 231,642 234,030 280,900 284,218 3,318 Streets and Road Maintenance 664,037 763,096 975 6,_62 1,150,734 176,072 1,357,664 1,457;023 1,710,276 11866,706 166,430 Parks and Rooreation Admin(strtrailonand Activities 343,677 666,160 403,238 509,071 10.5,833 Beautification 21176 23,721 8,750 58,262 49,512 Maintenance 819,214 768,660 869,025 837,370 (31,655) Total 1.106,067 1,369,541 1,281.013 1,404,703 1236690 Grand Total 1br 12,226,421 11,4 13�47�2.,134 2,047,319. 18 Agenda Item #1C. 18 Jun 2018 Page 12 of 26 City Administration Combined Summary of Revenues and Expenses Actual Actual Estimate Budget Increase 2014.2016 2016-2016 2016.2017 2017-2018 (Decreasai Revenues: 39..034 City Manager 24093 243,675 General Fund Resources 2,382,636 2,618,827 2,624,767 2,888,987 264,220 Total Revenues 2,382,6382,618,8272,624 862,111 ,767 2,888,987 284,220 Expenses: 2016.2017 2611.2018 City Clerk 253,p95 263,460 281,271 320,305 39..034 City Manager 24093 243,675 318,674 387,943 69,269 Finance and Accounting 832441 884,840 862,111 930,734 68,623 Information Technology 766,063 777,644 717,634 771,460 $3,826 Human Resources 199,795 213,365 211,942 228,645 18,603 Legal Counsel 96,150 235,824 233,135 .250,000 •16,865 Total Expenses 2;382,638 2,618,827 2,624,767 2,888,987 264,220 POrchasing Agent 1.00 Resource Allocation: Wilily Billing Supervisor 1100 1.00 Utility Specialist 1,00 Personal Services 1,603,625 1,703,677 1,638,558 1,919,160 280,602 operating Expenses 692,676 819,267 899,209 848,827 (50,382) Capitaloutlay '186,337 95,982 87,000 121,000 34,000 Transfers Computer Network and PCI$erver Teehnlcian 2.00 2.00 3.00 Total Resource Allocation: 2,382;638 2,618.111 2,824,787 _ 2,888,987 1.00 Summary of Authorized Positions 2016.2017 2611.2018 City Clerk City Clerk 1.00 1,00 Adminisirative Assistant 1.00 1.00 Retards Clerk 1.00 1.00 3.00 3.00 CityManager City Manager 1.00 1.00 Deputy City Manager 0.00 1.00 Administrative Assistant 0.00 1.00 Customer Service Specialist 1.00 1.00 2.00 4,00 Finance Finance Director 1.00 1.00 Deputy Finance Director 1.00 1.00 Accountant 1.00 0.00 POrchasing Agent 1.00 1.00 Wilily Billing Supervisor 1100 1.00 Utility Specialist 1,00 1.00 Accounts Payable Clerk 1.00 1.00 Customer Service Super, 1.00 1.00 Customer Service Rep, 2.00 2,00 10.00 9.00 Information -Technology Computer Network Director 1100 1.00 Computer Network and PCI$erver Teehnlcian 2.00 2.00 3.00 3.00 Human Resources Human Resources Director 1.00 1.00 Human Resources Assistant 1.00 1.00 2.00 2.00 Legal Counsel City Attorney 1.00 1.00 Total21.00 22.00 Agenda Item #1C. 18 Jun 2018 Page 13 of 26 Miscellaneous Items Ilealth Insurance included Is available for all full time employees. This budget Includes an estimated ro96rate Increase. We also can servatively assume any vacant positions will request 010 Coverage although there Is varying levels of participation due to turnover, 2017 Budget 5 987,410 2o18 Budget -of B6.t51 Increase $98,711 Percentage Increase fo°/v --Follow up Topics to Discuss Millage Rate and budgeting policies General Liability Gencro1 Liability -The Insurance costars allocated based on the policy to the varlous deppartments depending on the coverage of the policy. Thenlicles includeAulo, General Liability, Publlc 011lcialanmployee Liablllty, Environmental, Fiduciary and Police Statutory and Liability. The City also budgets fora broker's service to assist In keeping adequate coverage, 2017 Budget $370,967 x018 Budget S n • Increase oho% $37,a84 Percent Increase of ro°h Agenda Item #1C. 18 Jun 2018 7/12/2017 3 Page 14 of 26 Adminlstrative Budget ' General Fund Major Items Included =7 ems • Cleric City Clerk S317X5 S376,61g • Contractual Services(Minutes)S19,8zo City Manager 253,905 389,$95 ° Finance &Administration Finance = PinanceandAceounting 992,557 7, 937,899 +Audit - slo,000additionalauditserviccstoassessriskof separatinnofdutiesfenuory2o17-Aprllaol7 and ccounti Informagy G ,55 7 9 9 $ 51 435 N InformationTeclutology Human Resources 217,935 x35,614 . Will discuss 7/19117 Legal Counsel 155.000 215,noo 4 Human Resources Total S455i631 $2,999,467. • Employee Assistance Program and training -s5,oao y Legal Services- 5175,000 Miscellaneous Items Ilealth Insurance included Is available for all full time employees. This budget Includes an estimated ro96rate Increase. We also can servatively assume any vacant positions will request 010 Coverage although there Is varying levels of participation due to turnover, 2017 Budget 5 987,410 2o18 Budget -of B6.t51 Increase $98,711 Percentage Increase fo°/v --Follow up Topics to Discuss Millage Rate and budgeting policies General Liability Gencro1 Liability -The Insurance costars allocated based on the policy to the varlous deppartments depending on the coverage of the policy. Thenlicles includeAulo, General Liability, Publlc 011lcialanmployee Liablllty, Environmental, Fiduciary and Police Statutory and Liability. The City also budgets fora broker's service to assist In keeping adequate coverage, 2017 Budget $370,967 x018 Budget S n • Increase oho% $37,a84 Percent Increase of ro°h Agenda Item #1C. 18 Jun 2018 7/12/2017 3 Page 14 of 26 Agenda Item #1C. 18 Jun 2018 Page 15 of 26 'II tIJ o CLM 3. .._ o U) o ..� N N U UU) a E W U u- o (a - i Uo _ a li ti cc a) O a) O �-' C m 0 cu d LL O `' .O (Ci CL ° N f6 °- (Ji > Q m � o o a U) .� is ami u- 42) C H CDcl, _ = U [ a� z 4 cn U) as - u 0 0 0 0 00 o 0 o 0 o m :.� 0 Ln 0) 0 N �- .1 [h 4j)' AIR. Page 15 of 26 ESTIMATED BREAKDOWN OF FEES BY DEPARTMENT ! THROUGH APRIL 2018 FOR SERVICES RENDERED SINCE OCTOBER 112017 City Attorney General Representation Fee Amount Community Development 35% Commission 25% Code Enforcement 15% Building Department 5% Public Works/Public Utilities 5% City Clerk 5% City Manager 5% Human Resources 2% Finance Department 2% Police Department 1% $ 86,500.00 All other matters Community Development 59% Gate $ 1,400.00 Selva Preserve $ 8,100:00 j Flynn (50%) $ 3,025.00 Mayport Road $ 3,375.00 Sign Code $ 75.00 Land Development Regulations $ 750.00 Appeals $ 3,525.00 Comprehensive Plan $ 225.00 Commission 12% Election matters $ 4,195.00 Code Enforcement 10% Cloister $ 50.00 Seafood Kitchen $ 3,585.00 Public Works 9% Flynn (50%) $ 3,025.00 Finance 6% DMS Appeal $ 2,175.00 Litigation/HR 4% Harkelroad $ 125.00 Shaw $ 1.225.00 Subtotal—Alt other matters $ 34,855.00 TOTAL FEES—All matters $121,355.00 Estimate of Department Percentage for all matters through April 2018 I Community Development 42% Commission 21% Code Enforcement 14% Public Works/Public Utilities 6% Building Department 3.5% City Clerk 3.5% City Manager 3.5% Finance 3% Human Resources 1.5% Litigation/HR 1% Police Department 1% 00959430-1 Agenda Item #1C. 18 Jun 2018 Page 16 of 26 IN O O t0 1n m l0 W ut l0 n 'd a. a m mo co M m M W N .-i O rn w to N W a W p N m O Ol M N g w N M m M m V O In mW O�' O t� B a N W -1-1+ H' M V� O r -I N ti N ri O N e -I' V N N m 1 Vt W N LL 1�w to n71 r r r r r r r LL a r r r r r r r r L N N LL I r r r r Q1 r ani r r r 110 I r r .N -I r l O�1 [YI ri N � cl N w K Q oi$ Q w 0 Q O7 W z W w W rL (A viz mygO F•Q U.ODp pa p ¢ z zz 3 as L. , w Z o w w CiZ W F Z U o. 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O W O n Z w n.Zz LU- 3: o o_ kw8wn�� O w O m 0 0 0 w Q a a a vzi v=i Agenda Item #1C. 18 Jun 2018 Page 17 of 26 CITY OF ATLANTIC BEACH Organizational Charts CITY MANAGER City Manager Deputy City Executive Manager Assistant Receptionist d Public Recreation I Finance Public Planning & ii� Building Human Safet j & IT Works ,zoning I Resources Y Activities 4 Agenda Item #1C. 18 Jun 2018 Page 18 of 26 City Manager Purpose: To administer and enforce the en actments of the City Comm ission; to assis t Commission in making policy and program decisions; and, to otherw ise administer affairs of the City. The key component of administration of the city is the preparation delivery of the Annual Operating Budget. Key Objectives: ® Prepare a long-range financial plan ® To assist the Commission annually to establish a Strategic Plan and then to supervise tl accomplishment of established priorities ® Continuously examine and monitor city departments to ensure that the City is operating an effective and productive manner ® Provide the Commission with adequate, pertinent and clear information to allow them make prudent decisions ® Ensure that the handling of citizen corn plaints is done in an efficient, tim ely a professional manner ® Communicate with citizens and the press to maintain an open and responsive atmosphe necessary in a democratic government a Carry out the goals, objectives and policies established by the City Commission Issues, Trends and Highlights: In an effort to f ill the need f or improved citizen engagement and outreach, th e Manager's Office has added two positions in fiscal year 2018. • Deputy City Manager and Receptionist Agenda Item #1C. 18 Jun 2018 Page 19 of 26 Legal Counsel i i Purpose: The purpose of this program is to provide legal services, including ordinance interpretation, legal opinion, negotiation, litigation, etc., requested by the City Commission, City Manager or City staff. Key Objectives: The City Attorney is appointed by the City Commission and acts as the legal advisor i the municipality and all of its officers in matters relating to their official duties, T attorney prepares contracts, bonds, and other instruments in which the City is concern and endorses on each his approval of the form and correctness thereof. When required do so by the City Commission, prosecutes and defends, for and on behalf of the Cr complaints, suits and proceedings in which the City is a party. The attorney furnishes t City Commissioners, City Manager or department heads of the City an opinion on a:. question of law relating to their respective powers and duties, Agenda Item #1C. 18 Jun 2018 Page 20 of 26 , I - i i City Administration Legal Counsel PERSONNEL SERVCES Wages Salaries and Wages Overtime Special Pay Sub -Total Benefits FICA Pension Health and Life Insurance Worker and Unemploy Comp Sub -Total Total Wages and Benefits OPERATING EXPENSES Professional Services Contract Services Local Travel Communications Postage Utilities Rentals and Leases Insurance Repairs and Maintenance Printing and Publishing Advertising and Promotions Other Current Charges Office Supplies Operating Supplies Books, Training, Memberships Internal Service Charges Total Operating Expenses CAPITAL OUTLAY Land Buildings Infrastructure Improvements Vehicles Equipment Total Capital Outlay DEBT SERVICE Principal Interest Other Total Debt Service TRANSFERS To To Total Transfers DIVISION TOTALS Actual Actual Estimate Budget Increase i 2014.2015 2016.2016 2016.2017 2017-2018 (Decrease) .� 96,150 235,421 233,135 250,000 16,666 .111 402 96,150 235,824 233,136 260,000 :16,866 jl i ,I I i t 96,160 236,824 233,136 250,000 ; 16,665 Agenda Item #1C. 18 Jun 2018 Page 21 of 26 Page 22 of 26 Commissioner John M Stinson City of Atlantic Beach, Florida 800 Seminole Road Atlantic Beach, FL 32233 15th of June 2018 The Honorable Mayor Glasser, the Honorable Commissioner Kelly, the Honorable Commissioner Norris, the Honorable Commissioner Waters, City Manager Mr. Joe Gerrity, City Clerk Ms. Donna Bartle and City Attorney Ms. Brenna Durden City of Atlantic Beach, Florida 800 Seminole Road Atlantic Beach, Florida 32233 RE: Legal Fee Review and Future Management of Legal Expenses To The Honorable Mayor Glasser, the Honorable Commissioner Kelly, the Honorable Commissioner Norris, the Honorable Commissioner Waters, City Manager Mr. Joe Gerrity, City Clerk Ms. Donna Bartle and City Attorney Ms. Brenna Durden: I want to thank each of you for considering my recommendation to discuss legal fees incurred by the City of Atlantic Beach and how these expenses might be better managed moving forward. And I apologize for my absence, but my travel had been planned long in advance. I have full faith and confidence in each of you to collectively determine a path forward. I would like to be clear in stating that in no way am I seeking to affect any change in legal representation. For those of you who know me and have watched my actions in the past, you must surely know, that if I sought such a change, I would be at the forefront of such an effort, as I do not back away from making those hard choices. I believe Ms. Durden has provided the City with outstanding service and has worked as directed by the City Commission on all matters given to her. The motivation for my Recommendation to the Commission is very clear. Legal expenses over the past several years have outpaced what the City historically has incurred. As stated in that recommendation, there is reasonable justification for those increases. But as the Commission, charged first and foremost in our Charter Agenda Item #1C. 18 Jun 2018 Page 23 of 26 15th of June 2018 Page 2 and our duties with ensuring good fiduciary oversight, I feel we must complete a detailed review of why those expenses were incurred and how to manage them in the future. And it will take each of us, focused on managing these expenses, to succeed in the effort. My personal belief is the City needs to develop more detailed budgeting practices related to this particular expenditure category. Currently the City financials do not report legal fees in great detail, malting it next to impossible to determine where these expenses originate. First, I believe each elected official should have an individual annual budget for legal expenses. In the past I have observed on more than one occasion, legal fees being incurred at the request of one or perhaps a minority of elected officials without official sanction or consent of the majority of the Commission. The purpose of this line item would be to educate each of the elected officials as to how they individually might be affecting the finances of the City. Yes, some elected officials might incur more than budgeted, but some would incur less. Without this data, none of us truly understand or are aware of the costs we cause the City to incur in our roles as an elected official. Second, I believe the City Clerk should have direct access to the City Attorney. One only has to think about an election year, and the probable needs the City Clerk might have a reason or reasons to consult with the City Attorney. The City Clerk should also have a annual budget for legal fees. Consultations about meeting postings, ethics training, election law changes and numerous other matters could arise necessitating the City Clerk contacting the City Attorney. And as one of three direct reports of the Commission, the City Clerk would be charged with managing her legal budget. Third, I believe each and every department within the City needs to prepare, monitor and be accountable for a legal budget. Some departments incur significant legal expenses and yet are revenue -generating departments. Without more detailed budgeting, it is difficult for City staff in these departments to know if any fees charged are adequate or excessive, appropriate or necessary or how each of these departments may contribute to the finances of the City. While it may be easier to book all legal fees to City Administration, in my opinion, doing so does not contribute to all City employees understanding the financial impact they may have. Agenda Item #1C. 18 Jun 2018 Page 24 of 26 15th of June 2018 Page 3 Nor does such ease of booking contribute to all staff members focusing on controlling such costs. As I tried to communicate to each of you in my Recommendation to the Commission related to legal expenses, we should not forget, other than legal fees incurred as a result of elected official or City Clerk actions, the City Manager has oversight, authority and accountability for all costs incurred and the effect such costs have on the City Manager's budget. The budget prepared by City staff forecasts future legal expenses, as determined by the City Manager and his staff. And in that light, the City Attorney is essentially support staff to the City Manager in all matters the City Manager feels legal counsel is necessary. Fourth, the City Attorney needs more clear direction from the City Commission on her role in managing legal fees. Upon retaining Ms. Durden, the City had an expectation that there were a certain number of hours Ms. Durden's services would be needed. The subsequent contract was designed to cover those needs and to adequately compensate her firm for her work. A review of those needs now, would be in order. The Commission has changed, City management and staff has stabilized, and our needs because of the quality of the staff the City has today most likely make demands for Ms. Durden's services less. Ms. Durden has a better understanding of the meetings she is expected to attend, the departments that may need more guidance or less, and should have a wealth of experience in City matters that would allow her to assist in controlling legal expenses. The retainer paid to Ms. Durden's firm may need revision, but I believe the City and the City Commission should determine a monthly retainer amount that would also be used as a budget line item for managing legal fees. This retainer should cover routine, customary and normal day-to-day expenses. Such detailed budgeting as proposed would also give the City Attorney data needed to self -manage monthly routine expenses. Finally, I believe the City needs to affect a paradigm shift in how we consider extraordinary expenses. Examples of such extraordinary expenses would be matters such as service station Code revisions, medical marijuana, sign Code revisions, land acquisitions, independent outside counsel retention, human resource matters, etc. These types of expenses are often non-recurring, and many times difficult to foresee and forecast or budget. Expenses of this nature should be viewed more like a capital project in theory. For example, the City has an ongoing repaving project and schedule. Yet, when the City considers a streetscape project, the paving that might be included in the project isn't billed to the repaving budget account. It is billed to Agenda Item #1C. 18 Jun 2018 Page 25 of 26 15th of June 2018 Page 4 the streetscape project. Why would the City not handle extraordinary legal expenses in much the same manner? If we did, the residents and taxpayers would better understand why legal expenses might be incurred and that those expenses aren't just for routine and customary business. I believe the City should adopt a policy of accepting an engagement letter for extraordinary legal matters from Ms. Durden and Lewis, Longman and Walker (or any other outside counsel utilized) that includes projected costs and timing. Much like I would do with my personal accountant or attorney when I have need for these services. The engagement letter should be presented to the Commission for ratification, including public input. Then a budget line item would be added to track expenses related to whatever priority has arisen. As a result, everyone would have adequate knowledge and understanding of any extraordinary expense incurred. With adoption of these recommendations, we would now have everyone who might have any impact on legal expenses, focused on managing and minimizing those very fees. And the clarity for the public would enable understanding and be educational. This is purely and simply "cost center" accounting, very common in the world of accounting and commonly utilized by businesses and governments in a multitude of environments. Again, I would like to thank you all for considering my recommendations. Good luck in your discussions. I also wish to thank each of you for your efforts to make our home a better place. Sincerely, ,5�, M - 9,,r, Commissioner John M Stinson Agenda Item #1C. 18 Jun 2018 Page 26 of 26